A recent report has shown that the online banking industry is enjoying a popularity boom and according to officials the popularity of this sector is set to continue rising. Officials said that online banking was a little slow to get off the ground initially, largely because when it was introduced many people were unsure as to the security of their details when it came to something as important as their bank accounts.
However, today’s customers are millennials who were brought up in the age of the internet and have become used to doing everything online. This is a generation that prefers options such as online banking as opposed to inconvenient traditional banking, which has resulted in the popularity of internet banking rising as more and more young people start opening and switching bank accounts.
Increased ease and convenience for customers
One of the main reasons why online banking has become so popular amongst younger people is the total ease and convenience that it offers. Many younger people are working full time or at colleges and universities, which makes it difficult for them to go to bank branches in order to deal with financial transactions. However, with access to high tech devices and services such as smartphones, tablets and 4G connections, younger people are easily able to conduct transactions like these from the comfort of work, from home, or while on the move.
Millennials are also more trusting when it comes to conducting financial transactions online, which has further helped to boost the popularity of online banking amongst people in this age group. While traditional banking methods are still more popular with the older generation, younger people enjoy the ease, convenience and easy access that online banking provides.
In many cases, online banks also impose lower charges that traditional banks in the form of penalties and some also offer incentives to those who switch to them. For younger people, these are all valuable benefits that further enhance their interest in this type of bank account. More and more traditional banks have now started offering online facilities in order to benefit from the growth in popularity of this type of banking.
One official said that online banks were gaining a bigger and bigger share of the market these days and this was a trend that would most likely continue. Online only banks were also the only banking category to have gained market share amongst retail customers in the past ten years.